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Over $130M in Liquidations as Bitcoin Skyrockets to a 3-Week Peak After Powell’s Rate Cut Promise

Summary:
The business week ends with high levels of volatility as bitcoin’s price soared to almost ,000 for the first time since the start of the month. This rally, which was mostly mimicked by the altcoins, was possibly fueled by the latest developments on the US front and its central bank in particular. CryptoPotato reported earlier today that BTC had maintained above ,000 after yesterday’s failure to conquer ,000. However, the asset touched that level earlier today after Fed Chair Jerome Powell said it is time for the US central bank to start lowering the interest rates, similar to what the ECB and the Bank of Canada did during the summer. After an immediate retracement toward ,000, the primary cryptocurrency headed north once again an hour ago. This time, the asset

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The business week ends with high levels of volatility as bitcoin’s price soared to almost $64,000 for the first time since the start of the month.

This rally, which was mostly mimicked by the altcoins, was possibly fueled by the latest developments on the US front and its central bank in particular.

CryptoPotato reported earlier today that BTC had maintained above $61,000 after yesterday’s failure to conquer $62,000. However, the asset touched that level earlier today after Fed Chair Jerome Powell said it is time for the US central bank to start lowering the interest rates, similar to what the ECB and the Bank of Canada did during the summer.

After an immediate retracement toward $60,000, the primary cryptocurrency headed north once again an hour ago. This time, the asset flew past $62,000 and $63,000 and neared $64,000 to chart a 3-week high.

This is likely because lower interest rates in the world’s largest economy would mean easier access to funds that could be allocated toward risk-on assets like cryptocurrencies.

Bitcoin/Price/Chart 23.08.2024. Source: TradingView
Bitcoin/Price/Chart 23.08.2024. Source: TradingView

Most altcoins have also produced impressive gains in the past day or so. Ethereum has surged by just over 5% and now sits close to $2,750. DOGE, AVAX, SHIB, DOT, and LINK have added between 5-8% as well.

Even more impressive gains come from the likes of NEAR (12%), STX (10%), TAO (12%), APT (11%), FET (22%), and SUI (19%).

This substantial volatility has harmed short traders as the total value of liquidated positions has risen to over $130 million, with shorts dominating the charts.

Just shy of 55,000 traders have been wrecked in the past day, according to CoinGlass.

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